Table 16.7 The USA and China Are Locked in Negotiations to Cut

Table 16.7
The USA and China are locked in negotiations to cut emissions.The following table represents the pay-offs from cutting emissions and continuing to pollute:

-Refer to Table 16-7.When this game reaches a Nash equilibrium, payoffs for the USA and China will be:

A) $2.5mil and $1mil, respectively
B) $1mil and $1.5mil, respectively
C) $0.8mil and $2.4mil, respectively
D) $2mil and $1.8mil, respectively